March 10, 2010

AgFeed FY'09 revenue jumps 21%

Animal feed and pork company AgFeed Industries Inc. reported a 21% increase in full-year revenue, helped by higher production volumes at both its operating units, sending its shares up 20% in pre-market trade.

The company expects to increase its sow base to about 40,000 this year and to 60,000 by 2011, and it said this would allow for production of about 1.25 million hogs in 2011.

For 2009, the company reported operating earnings of 31 cents a share. In 2008, AgFeed posted earnings of 53 cents a share, and excluding items, it earned 73 cents a share. Revenue rose 21% to US$173.2 million.

Production volumes at the company's hog division rose 66%, while volumes at its animal nutrition division were up 56%.

AgFeed shares were up at US$5.41 in pre-market trade Tuesday (March 9). The stock, which has more than quadrupled in value from a year-low in March 2009, closed at US$4.51 Monday on Nasdaq.